Nomura Securities: Expects the Fed to cut interest rates twice next year and then pause rate cuts until March 2026

PANews reported on November 18 that according to Jinshi, Nomura Securities no longer expects the Fed to cut interest rates at the December policy meeting. This makes it the first global brokerage to hint at a rate cut cycle for the Fed after Trump won the election. Nomura Securities now expects the Fed to cut rates only twice at the March and June meetings in 2025, each time by 25 basis points. The brokerage maintains its forecast for the federal funds Intrerest Rate at 4.125% before next year. Nomura Securities expects that after a possible rate cut in June next year, the Fed will pause its rate cuts until March 2026. The benchmark overnight interest rate of the Federal Reserve is currently in the range of 4.50%-4.75%, which has been lowered by 75 basis points so far this year. Meanwhile, other global brokers including Goldman Sachs and JPMorgan still expect the Fed to cut interest rates by 25 basis points next month.